Overview of US Datacenter REIT
If you don't like the volatility of tech stocks, yet still want to have steady dividends, then don't be surprised that datacenter real estimate investment trusts (REITS) offer an answer.
These REITs buy properties, set up huge servers, rent them out and pay net incomes to investors. Tenants renting from them include big names like Google, Facebook and IBM. These technology companies are huge on online commerce, cloud computing, artificial intelligence. Hosting tons of datas and loading these on clouds require huge computing power that related tech companies like Nvidia and Broadcom are seeing huge stock price gain with boom in this sector.
Something worthy to note, the largest of the 7 Datacenter REITs listed in US - Equinix has seen huge price gain since 2012.
Singapore Datacenter REIT - Keppel DC Reit
Keppel DC Reit is first data center REIT listed in Asia. As written in the company website, which I extracted:
Listed on 12 December 2014, Keppel DC REIT is the first pure-play data centre REIT listed in Asia and on the Singapore Exchange (SGX-ST).
Keppel DC REIT's investment strategy is to principally invest, directly or indirectly, in a diversified portfolio of income-producing real estate assets which are used primarily for data centre purposes, as well as real estate related assets, with an initial focus on Asia Pacific and Europe.
As at 31 December 2016, the portfolio comprises 11 data centres strategically located in key data centre hubs. With an aggregate lettable area of approximately 843,084 sq ft, the portfolio spans nine cities in seven countries in Asia Pacific and Europe.
Starting from year 2015, dividend yield is around 5.02 - 5.56%.
On 18 Aug 2017, Temasek Holdings via DBS Bank has acquired more Keppel DC Reits. See SGX Disclosure here.
Sumitomo Life Insurance Company has also bought more Kepple DC Reits recently around $1.2941 to become a substantial shareholder. See SGX Disclosure here.
Price chart on Keppel DC Reit
Price has been trending upwards steadily. If you compare Keppel DC Reit price chart with EQIX, both are trending upwards. Perhaps this reflects the general performance of this industry. In latest financial statement July 2017, Keppel DC Reit's management was positive about future growth led by growth in the datacenter industry.
Important Support Resistance levels for The Alien Room subscribers
Keppel DC REIT shows a nice uptrend. Price is well supported by 2 very important support levels.
In this chart here, I marked in 2 support levels and 1 resistance level which are key to this stock. These levels are identified with Tflow® Strategy.
To open this super important chart on Keppel DC REIT, you need to have a valid The Alien Room subscription. Consider getting one as we have nice performance using Tflow® Strategy in Forex Trading too.
From the trading desk of Binni Ong,
to your trading success,